The disadvantages of the development of the submersible pump industry

Although China’s labor prices have risen in recent years, and the renminbi has continued to appreciate, China’s export product prices have also increased accordingly. However, compared with products from developed countries such as Europe and the United States, China’s well submersible pump products still have significant cost-effective advantages. The selling price is several times the price of similar export products in China. With the development of wells in the submersible pump industry in China and the improvement of production technology, the technical content and quality of products have been continuously improved, and the export prospects of well-used submersible pumps are promising.

At the same time, China's submersible pump industry still has certain deficiencies compared to developed countries in Europe and America. There are still three major unfavorable factors in the development of the submersible pump industry.

(1) There is still a certain gap between the overall technical level of the industry and foreign advanced enterprises

China's well-used submersible pumps industry has a large number of production enterprises. Most companies have small-scale production, extensive operations, lack of R&D investment, and relatively backward technologies and equipment. They have not formed economies of scale, and have poor product quality stability and risk resistance. Strong. In the industry represented by the company, a small number of submersible pump companies in the industry through years of research and development and accumulation, product quality and technical level have greatly improved, and actively participate in the international market competition and have a certain market share, independent brands have also obtained a certain degree of The development, but compared with foreign advanced enterprises, China's well submersible pump production companies in the production and marketing scale, technical level and innovation capabilities still need to be improved.

(2) Upward fluctuations in raw material prices and rising labor costs

In recent years, the prices of major raw materials such as enamelled wires, silicon steel sheets and copper parts required for well production with submersible pumps have fluctuated, and the rising labor costs have caused certain adverse effects on the development of the well submersible pump industry, but the internal part of the industry Advantageous enterprises continue to reduce production costs through technological improvement and large-scale production, and with the increasing market recognition and brand awareness, their ability to shift costs downstream is also increasing, and to a certain extent, the price fluctuations of upstream raw materials can be eased. The pressure comes.

(3) Rising renminbi exchange rate pressures exports

At present, China's well submersible pump manufacturers are actively participating in the international market competition, and occupy a relatively large market share in the international market with a better price/performance ratio. For export-oriented companies, product exports are generally settled in U.S. dollars. In recent years, the renminbi continued to appreciate. At the end of 2011, 2012 and 2013, the appreciation of the renminbi against the US dollar was 4.86, 0.24%, and 3.00%, respectively, as compared with the end of the previous year. The appreciation of the renminbi weakened the price advantage of China's well submersible pump exports to some extent.


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